What is a Seed Phrase and Why You Should Never Lose It

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What is a Seed Phrase and Why You Should Never Lose It

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Digital currencies have revolutionized the way we think about money and financial transactions. Companies like CoinsDo are at the forefront of making these technologies accessible and secure. However, with this new digital frontier comes a need for users to adapt their understanding of what 'security' means. One of the most critical concepts to understand is the seed phrase, a series of words that serve as your last line of defense in safeguarding your digital assets.

What is a Seed Phrase?

A seed phrase, also known as a mnemonic phrase or recovery phrase, is a series of 12, 18, or 24 words that are generated by your wallet software when you create a new wallet. These words act as a human-readable representation of your wallet’s private key. The private key, in turn, is what allows you to access and control your digital assets.

How Does it Work?

When you set up a new digital wallet, the software will generate a random private key, which is essentially a long string of numbers and letters. To make it easier for humans to handle, this private key is translated into a seed phrase. Wallet software uses a standardized dictionary of words for this translation, making it universally recoverable.

Just like how you'd need a physical key to open a safe, you need your private key to access your digital wallet. If you lose access to your wallet or need to restore it on a new device, you can input your seed phrase to regenerate the private key.

Why You Should Never Lose Your Seed Phrase

Irreversible Loss

While custodial solutions may take on the responsibility of safeguarding your assets, non-custodial solutions like CoinWallet give you full control over your seed phrase and your assets, meaning there’s no central authority to assist in recovery. If you lose your seed phrase, you essentially lose your private key and, consequently, access to your digital assets. No one, not even the wallet provider, can help you recover them.

Security Risks

Keeping a physical copy of your seed phrase is crucial, but it must be stored securely. Writing it down and leaving it out in the open makes you susceptible to theft. Any person with access to your seed phrase can access and transfer your assets.

Best Practices for Safeguarding Your Seed Phrase

Secure Storage: If you absolutely must make a physical copy of your seed phrase, create multiple copies and store them in multiple secure locations like a safe or a bank’s safety deposit box.

Do Not Store It Digitally: Avoid storing your seed phrase on any digital platforms to prevent it from getting hacked.

Regular Checks: Periodically check the location where you’ve stored your seed phrase to ensure it’s still there and readable.

Family and Beneficiaries: Make sure someone you trust knows how to access your seed phrase in case something happens to you.


Your seed phrase is your ultimate backup for securing your digital assets. Losing it means losing your assets with no avenue for recovery. By understanding the importance of a seed phrase and taking steps to safeguard it, you're not just securing your digital wallet but also taking an active role in managing your digital assets, which is precisely what non-custodial solutions like CoinWallet empower you to do.

David Ho

The Author

David Ho

Writer / Blockchain Enthusiast